BoE Governor Bailey decided the vote today and may well do next month too..
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| Money markets showed a 30% chance of a Bank of England rate cut today with Goldman Sachs a prominent figure leading that narrative.
However, the bank leaves the rate unchanged at 4% as expected with the Pound unmoved in the build-up and on release. The vote was a surprise though which saw a result of 5/4 with 6/3 expected (it was 7/2 at the last meet).
Governor Bailey decided things this time round and will likely do next month, albeit with probably a vote to cut instead of to hold. That still does very much depend on the UK Budget in a few weeks time and of course with a close eye on what the Fed is doing.
Today was about damage limitation for the Pound which has been achieved.
The UK Budget holds the cards on what the bank will have to do next. Depending on the outcome and how financial markets interpret and forecast what happens to the UK next, the pace of near-term interest rate cutting will be dictated in a few weeks time.
The pressure on GBP will remain and rumours of the upcoming Budget will continue to circulate. Sterling may creep up slightly in the days/weeks ahead, but it's more likely to either just hold or get worse as the big risk event edges closer.
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